Monday, August 18, 2008

Cheap Money

As I've long said, when buying a house the only thing that people really care about is the affordability of the monthly payment. Interest-only, neg-am, and ARMs with low teasers helped drive up the purchase price of homes by driving down the monthly payments. Sure some people should've known better and not fallen for the idea that they could just keep refinancing forever, but plenty of people were steered into mortgage products they didn't understand.